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Discover Workday HCM's costs with OutSail. Typical fees are $34-42 PEPM. Workday no longer has a minimum annual cost of ~$250K, making the solution more available to mid-sized companies. See exact pricing for every HRIS vendor on OutSail's HRIS Marketplace
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Workday HCM charges companies on a quarterly or annual subscription basis. Workday HCM has historically been one of the most expensive HRIS option on the market. Workday's software fees can cost as much as $34-42 PEPM for companies at scale.
Companies with less than 500 employees can expect to pay $150-$300K annually for the HCM & Payroll features. Companies with 500-2,500 EEs can expect to pay between $300-$500K.
Workday used to have a minimum annual cost of ~$250K, but this has gone away now that Workday is making their solution more available to the mid-market.
In addition to the software fees, implementing Workday HCM will require a one-time implementation fee. Workday HCM, or their implementation partners, will charge ~100% of the annual software fees for their implementation fees (i.e., $500K implementation fee on a $500K annual purchase).
Many of Workday HCM's enterprise customers also have multiple full-time HRIS managers or continue to pay their implementation partner to help manage the system, so this is another cost to consider with Workday.
Workday has recently set their sights on the mid-market and have adopted a more streamlined implementation approach that can lead to lower costs and quicker implementation timelines. Workday no longer has a minimum annual contract value (ACV) of $250K for customers, with some smaller customers seeing annual costs in the $100-200K range.
Additionally, Workday offers new implementation methodologies that are enabling customers to go live with their HRIS in 3 months, and HRIS + Payroll in 4 months. This is much quicker than Workday's implementation timelines for enterprise customers and has also led to a large reduction in costs for customers.
Workday HCM offers every module from hire-to-retire and even provides robust financial & accounting tools too. Companies can, and often do, use Workday HCM as their single system for all HR needs. However, some companies will leverage a best-in-class payroll tool (like ADP) or a best-in-class ATS (like Greenhouse).
Some of the Core HR functionality that Workday offers includes:
Additionally, Workday has some of the most robust talent management functionality in the marketplace, including:
Workday HCM was founded by ex-PeopleSoft executives who saw an opportunity to bring the HCM model to the cloud. Workday is a Silicon Valley success story that has turned into one of the leading enterprise software companies in the world. Workday software is targeted at enterprise companies and Workday customers make up a significant portion of the Fortune 500. The system is defined by a single database architecture, strong integration capabilities and endless permissions, controls and configurations. Despite being a robust, full-featured system, Workday is still user friendly and does a great job of encouraging employee self service
Workday HCM is considered an Enterprise HRIS, which means the system works best for companies with more than 1,000 employees. Enterprise solutions are designed to be all-in-one HRIS's for companies with high degrees of complexity in their operations. Companies that operate in many states and countries, and companies with numerous entities and sub-divisions find a lot of value in working with Enterprise HR Systems.
Enterprise solutions typically take about 6-10 months to implement and often require external consultants to successfully implement and manage the solutions. Enterprise solutions have powerful rules engines and unmatched custom workflow tools, that enable them to meet any company's requirements. Enterprise solutions also offer robust talent management tools to improve recruiting processes.
Although Workday has historically been an enterprise system, they have made a strong effort to move down market in recent years with a revamped pricing model and implementation approach. Some mid-market customers are implementing Workday in 3-4 months with their new implementation model.
Although there are many great things about Workday, it is not a fit for every business. Some things to keep in mind when deciding if Workday is best for your business include:
Workday HCM charges companies on a quarterly or annual subscription basis. Historically, it has been one of the most expensive HRIS options on the market, with software fees ranging from $34 to $42 per employee per month for companies at scale. However, recent pricing updates have made it more accessible to mid-market companies, with some seeing annual costs in the $100K range.
Workday HCM offers a comprehensive range of modules covering the entire hire-to-retire process, including payroll management, benefits administration, HR administration, time tracking, onboarding, offboarding, recruiting, performance management, compensation management, workforce planning, succession planning, engagement, and learning.
Workday HCM was founded by former PeopleSoft executives with the goal of bringing the HCM model to the cloud. It has become one of the leading enterprise software companies globally, targeting Fortune 500 companies with its robust, user-friendly system characterized by a single database architecture and strong integration capabilities.
Workday HCM is designed for enterprise-level companies with more than 1,000 employees. However, recent efforts by Workday to move into the mid-market have resulted in revamped pricing models and implementation approaches, making it more accessible to smaller companies. Mid-market customers are now implementing Workday in 3-4 months with the new implementation model.
While Workday offers many benefits, it may not be suitable for every business. Considerations include the adequacy of its time tracking and workforce management features, whether its recruitment solution meets your needs, affordability in terms of initial implementation, renewal costs, and third-party integrations, and whether you'll use it as a one-stop-shop for all HR software needs or require third-party integrations.
